With announced sintering cuts and environmental concerns, Chinese steel mills have significantly raised requirement for high grade material like lump and pellets. This has resulted in sharp hike in spot lump and pellet premium in last one month.
SteelMint interviewed Mr. Amir Ali Akbari – from Copper Star Co. in Iran. The company is into exporting iron ore because of long term contracts with mines apart from selling cargoes in exchange. Below are the excerpts of the interview:
1. Iron ore prices in China have come down in last trading sessions What is your view on this?
I expect iron ore prices in next month to keep hovering between USD 63 – USD 67/MT, CFR China mark and I think inquiries for cargoes with grade below Fe 60% would be very much less than before. At the time being market demand is more focused on higher grades.
2. Have we recently concluded any export deal to China or any other country?
Last month we had no cargo for exporting but we will have 2 ships of magnetite with Fe 60+ grade.
3. Has there been any change in vessel freight rates this week? What are current freights for Supramax & Panamax vessels?
Vessel freight rates have increased very much and according to our last quotation they offered USD 15.5/MT from Bandar Abbas port to main ports of China that means significant increase in last one month.
4. How are market sentiments prevailing in Iranian iron ore export market?
Unfortunately in last few days , fall in global prices have resisted mine owners from selling material and wait for better prices. As per my opinion, traders should not keep eyeing for very high price levels. I guess prices will be better in mid October.
High demand for Iranian cargoes caused a competitive market in China and Chinese traders are competing and offering better prices.
5. How are sentiments for pellet exports in Iran ?
Currently all buyers are looking for cargoes with high grades specially for product such as concentrate and pellet. Due to 15% tax imposed on export of pellet in Iran, export of this product is not that economical currently for Iranian traders.
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